I would be lying if I say I never lied.
By the age of 30, you probably finished a degree or two, landed a regular job, got a credit card in your wallet and have told a handful of lies. Let’s be honest (at least with ourselves) that we have told lies for whatsoever reason.
And money lies are lies we tell ourselves.
Here are the top 10 money lies we tell ourselves. Admittedly, these are also potential dangers to your finances if not avoided.
- My income is just enough for my needs. I don’t have extra cash to save.
Ever heard of this before? The main reason some of us do not have savings is the thought that salary is just not enough.
Avoid using this lie to yourself and spare the people around you. You have the capacity to adjust if you have the will to. When there is a will, there is definitely a way.
You might have heard that most financial advisers recommend saving at least 20% of the salary. Well, there is an exemption to the rule. If your finances just can’t cut through the 20%-savings rule, then make it a habit to constantly save a more convenient amount every payday.
Start by saving at least 5% of your salary, then you can increase it. Put the money in your savings and in the future, it will surely save you.
- I’m too young. Retirement savings can wait.
Yes, retirement can be around 20 to 30 years from now, but it is never too early saving up for it.
The earlier you save the earlier you can possibly retire and enjoy. You can start planning for your retirement now, then invest in various ways you could to grow your money.
When you invest, time can be your greatest ally.
- I need this for work.
Signature clothes, expensive shoes, and branded suits may be a need as work essentials. As they say, dress for success.
However, is it still rational if you buy these stuff every paycheck? When you go shopping reasoning that you need to dress well for your work, it becomes a financial lie.
While your boss might appreciate you coming to the office in a presentable attire for your clients, it would be much appreciated if you show up properly dressed and getting the job done.
- If I fish a bit from my savings now, I can make up for it later.
Now is not the best time to dip your fingers into your savings. If it is not a need, you better leave your savings in peace.
There are types of people who would feel lazy saving up once their savings got touched. If you are this type of person then you must avoid thinking that your savings are within easy reach.
It may take some time to discipline yourself financially, but it will be worth it in the long run.
Also, even though you say that you can pay off what you have “borrowed” from your savings, it may take some time. You will never be 100% sure that you can pay it back. Unforeseen things happen.
Consider that there is a chance that you might need the money for a real emergency anytime.
- My finances are too simple there is no need to sit and analyze it.
Now is the best time to analyze your finances. As you get older, have a family with kids and perhaps get a home loan, your finances will complicate.
While it is still simple, you must develop money-saving habits which you can use in the future when financial responsibilities start to pile up.
Take the time to check your transactions, create a budget, and recheck your financial habits.
You might think that since you have simple finances, your money can figure out itself without any effort. Too must optimism is dangerous for your finances.
Do not let these lies fool you.
While these self-rationalizations can give you short time comfort, you’ll soon realize that there is no other way around it but discipline yourself financially.
It sure is hard to have money-saving habits especially when you are young with a social lifestyle to upkeep, but it is harder to be in a situation when you’ll need cash but there is nothing within reach.
You are not going to get younger by the number, now is the time to make serious game play with saving up.
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